Staff at the Amazon Swansea fulfillment center process orders as they prepare their busiest time of the year. The 800,000 sq ft fulfilment center is one the largest of Amazon's six in the UK. (Matt Cardy / Getty)

SCHERTZ - After about six months of negotiations, officials in a South Texas city have approved about $7.6 million in direct tax incentives to land a $166 million distribution warehouse for Amazon.com in Schertz.

The 1.26 million-square-foot warehouse, called a fulfillment center, will become the largest facility in the city and Guadalupe County, said David Gwin, executive director of the Schertz Economic Development Corp. That organization approved the package, along with officials in the city and the county.

It's expected that the project will create 350 new jobs that will generate about $11 million in annual payroll.

Exactly what jobs would pay was not disclosed, but Gwin said that the wage would exceed the minimum standards set by law.

Schertz's incentive package is a six-year property tax rebate worth nearly $4 million. The development agency approved a $500,000 cash incentive, which is a rebate on permitting fees.

Tax abatement

The county also approved property tax abatement worth about $3.1 million, Gwin said. The county is not responsible for any cash payments, he added.

Additionally, there are conditions for sales tax sharing over a 10-year period where the city and county could realize about $35 million and $11.9 million over that period, respectively. But because state laws don't allow municipalities to collect sales tax on Internet sales, that part of the agreement is contingent on changes to legislation, Gwin said.

"There's a potential for a big revenue stream here," Gwin added.

There are still a few minor real estate issues that Amazon has to resolve before the deal can be finalized, Gwin said. Those were not disclosed.

State deal

Amazon had no comment.

Fulfillment centers are distribution centers for same-day delivery. According to the Amazon Fulfillment website, jobs at Amazon's fulfillment centers pay about 30 percent more than traditional retail jobs.

As part of a deal with the state comptroller's office to resolve the e-commerce giant's past tax liabilities with the state, Amazon pledged to create 2,500 jobs and make $200 million in capital investment in the state.